ED seeks EC action against K'taka Congress MLA on Rs 42 crore funds during 2023 polls
New Delhi/Bengaluru (PTI): The ED has written to the Election Commission seeking action against a Karnataka Congress MLA for "mobilising" about Rs 42 crore funds for unlawful transactions, including alleged bribing of voters, during the 2023 assembly elections in the state, official sources said.
The Enforcement Directorate has also made a similar communication to the Karnataka Lokayukta establishment under section 66(2) of the Prevention of Money Laundering Act asking the latter to go through the evidence collected by it against Nara Bharath Reddy, the legislator from the Bellary City seat, and register a case.
The ED had raided the premises of Reddy and some others linked to him in Karnataka and neighbouring Andhra Pradesh on February 10 as part of a money laundering investigation linked to charges of alleged illegal mining and some "fraud" land deals.
Three days later, it issued a press statement saying "crucial evidence was seized along with unaccounted cash of Rs 31 lakh, establishing involvement of Bharath Reddy, his personal assistant Rathna Babu and others in mobilising substantial amounts of cash for illegal payments."
"According to the incriminating evidence, Bharath Reddy mobilised approximately Rs 42 crore in cash over a few months, just before the assembly elections, utilising the funds for unlawful transactions," the ED had claimed.
The agency, sources told PTI, recently wrote to the EC stating that out of the Rs 42.07 crore fund, a "significant portion" was allocated for cash distribution to voters and other election-related expenses, including alleged payments made for securing party tickets.
It shared details with the Commission stating that documents seized during the searches show a "detailed account of cash collection for distribution to voters in exchange for their votes, implicating Nara Bharath Reddy in a scheme aimed at influencing voters during the 2023 Karnataka legislative assembly elections."
An email sent to Nara Bharath Reddy did not elicit a response on these charges made against him.
The ED informed the poll panel claiming that the 34-year-old MLA has "failed to disclose his election-related expenditure to the Election Commission and failed to account for the source of the substantial funds expended during the elections."
The agency has sought action against the legislator from the poll panel, saying these alleged actions constitute a "violation" of the Representation of the People Act, including bribery, corrupt practices, and failure to disclose election expenses.
The agency said it recovered handwritten records of cash transactions during the February raids at a total of 14 premises in the two states which indicate disbursements orchestrated by Reddy and his brother-in-law, Rajvardhan Reddy, during the 2023 elections.
It has claimed in its communication to the EC that the personal assistant of Nara Bharath Reddy "admitted" to drafting these documents as per his instructions.
The ED's searches were part of a money laundering case filed against the MLA, an alleged linked person Surya Narayana Reddy and others after taking cognisance of an FIR filed by the Gandhi Nagar police station to probe charges of illegal granite mining and some land deals by allegedly misusing general power of attorney (GPA).
It was claimed by the ED in its February 13 issued statement that Sharath Reddy (brother of Nara Bharath Reddy) made "undisclosed" investments in some foreign-based companies.
"The accused individuals were found to have invested in properties under benami names and obtained suspicious loans from relatives, utilising their bank accounts without their knowledge," it alleged in the statement.
Nara Bharath Reddy defeated his nearest rival Gali Lakshmi Aruna of the Kalyana Rajya Pragathi Paksha by over 37,000 votes during the polls that were held in May 2023.
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Adani touts financial strength, shows can grow without external debt
New Delhi (PTI): Billionaire Gautam Adani's conglomerate on Monday touted its financial and credit details of its portfolio companies to investors, showcasing its robust profits and cash flows that can sustain growth without reliance on external debt.
The ports-to-energy conglomerate, which has been hit by an indictment in a US court against its founder chairman Gautam Adani and two other executives for allegedly bribing Indian official to secure solar power contracts, in a presentation to the investors highlighted its consistently expanding profits and cash flows, which over a period have led to lowering dependence on debt for its growth ambitions.
Equity now accounts for almost two third of its total asset creation, a stark contrast to five years ago. In the last six months, the group has invested close to Rs 75,227 crore, against a total debt increase of only Rs 16,882 crore.
A note was also shared with the investors, along with presentations.
Outlining the group's liquidity position, the note said, "Adani Portfolio companies have sufficient liquidity to cover all debt servicing requirements for at least 12 months. As of September 30, 2024, Adani Portfolio companies had a cash of Rs 53,024 crore, which was close to 21 per cent of its total gross debt outstanding".
This amount, it said, was sufficient to cover the next 28 months of debt servicing requirement.
GROWTH WITHOUT DEBT
In the past, the group has announced plans to invest over Rs 8 lakh crore (USD 100 billion) across portfolio companies in the next ten years.
The Fund Flows from Operations (FFO) or cash profits stood at Rs 58,908 crore for the last twelve months and is growing over 30 per cent for the past five years. On the basis of this, even after assuming no growth, the group will be able to invest Rs 5.9 lakh crore only from its internal cash accruals over the next ten years, leaving very little dependency on external debt.
Further, at the portfolio level, there is very low debt gearing of 2.46x -- which means it has massive headroom for debt, according to the presentation.
Other highlights from the presentation included EBITDA (earnings before interest tax and depreciation) for the last twelve months, which it said is highly stable and hence predictable due to its infrastructure projects, which grew by 17 per cent to Rs 83,440 crore.
Also, existing annual cash flows alone can pay the entire debt in 3 years.
Gross assets/investments increased by Rs 75,227 crore, against total debt increase of only Rs 16,882 crore. Asset base has now increased to Rs 5.5 lakh crore.
Average cost of borrowing at 8.2 per cent, lowest in the last 5 years, due to upgrade in ratings across group companies, it said.
Adani Group's long-term debt from domestic banks was Rs 94,400 crore. This stood against a cash balance of Rs 53,024 crore, most of which was parked with Indian banks.
Borrowings from global banks were 27 per cent of total debt.
